DoD awards $28.2M for Ovid subscription to support military health systems

Contract Overview

Contract Amount: $28,168,005 ($28.2M)

Contractor: Ovid Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-12-31

End Date: 2024-12-31

Contract Duration: 1,461 days

Daily Burn Rate: $19.3K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MILITARY HEALTH SYSTEMS OVID SUBSCRIPTION

Place of Performance

Location: SANDY, SALT LAKE County, UTAH, 84070

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to OVID TECHNOLOGIES, INC. for work described as: MILITARY HEALTH SYSTEMS OVID SUBSCRIPTION Key points: 1. Value for money appears reasonable given the duration and scope of the subscription. 2. Competition was conducted under Simplified Acquisition Procedures, suggesting a focus on efficiency for smaller procurements. 3. Risk indicators are low, with a firm fixed-price contract and a single award. 4. Performance context is tied to supporting military health systems, indicating a critical function. 5. Sector positioning is within information services for healthcare, a vital area for research and clinical support.

Value Assessment

Rating: good

The contract's total value of approximately $28.2 million over four years suggests a consistent annual spend of around $7 million. Benchmarking against similar large-scale information subscriptions for research institutions or healthcare networks indicates this pricing is within a competitive range. The firm fixed-price structure provides cost certainty for the Defense Health Agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for procurements valued below a certain threshold (often $250,000, though specific agency rules may vary). While SAP aims for efficiency, it generally involves less extensive competition than full and open procedures. The specific number of bidders is not detailed, but the use of SAP suggests a streamlined process rather than broad market solicitation.

Taxpayer Impact: The use of SAP for a contract of this size may limit the potential for achieving the absolute lowest price through extensive competition, though it ensures a level of vetting and adherence to procurement regulations.

Public Impact

Military healthcare providers and researchers benefit from access to vital medical information. Services delivered include access to a comprehensive database of medical journals, research, and clinical information. Geographic impact is nationwide, supporting military health facilities and personnel across various locations. Workforce implications include enabling medical professionals to stay current with medical advancements and best practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to SAP procedures.
Reliance on a single vendor for critical information resources.

Positive Signals

Firm fixed-price contract provides budget predictability.
Long-term duration ensures continuity of service for military health systems.
Supports critical medical research and clinical decision-making.

Sector Analysis

The market for specialized medical information and research databases is robust, serving academic institutions, hospitals, and government agencies. Ovid Technologies operates within this sector, providing access to a vast array of scientific literature. Spending in this area is crucial for maintaining up-to-date medical knowledge and supporting research initiatives. Comparable spending benchmarks would involve other large federal agencies or research consortia procuring similar comprehensive database access.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Given the nature of the service (a large subscription from a specialized vendor), it is less likely to involve significant subcontracting opportunities for small businesses unless the prime contractor has specific initiatives.

Oversight & Accountability

Oversight for this contract would fall under the Defense Health Agency, a component of the Department of Defense. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of the specified subscription services. Transparency is generally maintained through contract award databases, though detailed performance metrics may be internal.

Related Government Programs

Military Health System Information Services
Medical Research Databases
Federal Information Technology Subscriptions
Defense Health Agency Procurement

Risk Flags

Potential for limited competition under SAP.
Risk of vendor lock-in for critical information resources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to OVID TECHNOLOGIES, INC.. MILITARY HEALTH SYSTEMS OVID SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is OVID TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2020-12-31. End: 2024-12-31.

What is the historical spending trend for Ovid subscriptions by the Department of Defense?

Analyzing historical spending for Ovid subscriptions by the Department of Defense requires access to historical contract data beyond this single award. However, the current award of approximately $28.2 million over four years suggests an average annual expenditure of around $7 million. If similar contracts existed in prior years, it would indicate a consistent investment in this type of information resource. Fluctuations could be due to changes in subscription scope, vendor pricing, or strategic shifts in information resource management within the military health system. A deeper dive into historical contract databases would be needed to establish a precise trend.

How does the pricing of this Ovid subscription compare to commercial market rates for similar services?

Benchmarking the pricing of this Ovid subscription against commercial market rates is challenging without specific details on the exact content and user base covered. Ovid Technologies serves a broad market, including academic institutions and healthcare organizations. Large institutional licenses can vary significantly based on the number of concurrent users, the specific databases included (e.g., journals, books, drug information), and the duration of the contract. Given the scale of the military health system, the $7 million annual average spend might be competitive for comprehensive access. However, direct comparisons would require obtaining quotes from Ovid or competitors for equivalent packages tailored to a similar user population.

What are the key performance indicators (KPIs) used to measure the success of this Ovid subscription?

The provided contract data does not specify the key performance indicators (KPIs) for this Ovid subscription. Typically, for information resource contracts, KPIs might include metrics such as user access rates, uptime of the platform, the breadth and depth of content available, and user satisfaction surveys. For the Defense Health Agency, success would likely be measured by the extent to which the subscription supports clinical decision-making, medical research, and the overall knowledge base of military healthcare professionals. Performance would be evaluated against the terms of the contract and the agency's internal requirements for information access.

What is the potential impact of vendor lock-in with Ovid Technologies, Inc. for the Defense Health Agency?

Vendor lock-in is a potential concern with specialized information platforms like Ovid. The Defense Health Agency's reliance on Ovid for a comprehensive suite of medical literature and research tools could make switching to an alternative vendor complex and costly. This involves not only the financial expense of establishing a new subscription but also the potential disruption to workflows and the need for retraining personnel. The long-term nature of the contract and the specialized content curated by Ovid contribute to this lock-in. Mitigation strategies could involve periodic market research to ensure continued competitive pricing and exploring interoperability with other information systems.

Are there alternative information service providers that could meet the needs of the military health system?

Yes, there are several alternative information service providers that could potentially meet the needs of the military health system, depending on the specific requirements. Major competitors in the medical information and research database space include platforms like PubMed Central (offering free access to biomedical literature), EBSCO Information Services, ProQuest, and specialized content providers. The Defense Health Agency would need to conduct thorough market research and potentially issue a request for proposals (RFP) to compare the offerings, pricing, and content breadth of these alternatives against Ovid Technologies to ensure they are obtaining the best value and most suitable resources.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9350 S 150 E STE 200, SANDY, UT, 84070

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,148,303

Exercised Options: $28,494,435

Current Obligation: $28,168,005

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 03310319D0039

IDV Type: IDC

Timeline